The Rise of No-Location Jobs

 
 
By Karen A. Frenkel  |  Posted 11-03-2014 Email
 
 
 
 
 
 
 
 
 
  • Previous
    More Choices Than Ever
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    More Choices Than Ever

    The number of locations suitable for business services offshoring is greater than ever. For companies, that's welcome news, but it also increases the complexity of designing "the optimal footprint," according to the A. T. Kearney report.
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    Top 10 Offshoring Countries
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    Top 10 Offshoring Countries

    Rank, Country, Position Change: 1 India 0, 2 China 0, 3 Malaysia 0, 4 Mexico +2, 5 Indonesia 0, 6 Thailand +1, 7 Philippines +2, 8 Brazil +4, 9 Bulgaria +8, 10 Egypt -6
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    India Increases Its Lead
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    India Increases Its Lead

    India maintained and even increased its lead as the top offshoring destination against second-ranked China. Asia continues to dominate, with six of its countries among the Global Services Location Index's top 10. The index ranked Bangladesh for the first time, at 26.
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    Mature Labor in Central Europe
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    Mature Labor in Central Europe

    Central Europe offers highly skilled workers at 50% of the cost of Western Europe, and that cost advantage increases in Southeast Europe. These cost advantages must be balanced, however, against a more mature industry and regulatory landscape.
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    Middle East, North Africa, and North America
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    Middle East, North Africa, and North America

    The Middle East and North Africa benefit from a large pool of talent and from their proximity to Europe. North America offers attractive opportunities outside metropolitan areas.
  • Previous
    Outsourcing Course Correction
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    Outsourcing Course Correction

    Companies are repatriating some functions to companies' own service centers and employees, especially in IT, whose strategic importance has vastly increased with the advance of digitization this past decade.
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    Other Priorities Replace Cost-Effectiveness
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    Other Priorities Replace Cost-Effectiveness

    "What was once a decision based primarily on cost-effectiveness has now started to incorporate other considerations, for example, whether the function is core to the business, and therefore needs to be brought back in-house, as well as external regulatory factors impacting business relationships, accountability, and the ability to protect intellectual property and customer privacy," says Erik Peterson, director of A.T. Kearney's Global Business Policy Council think tank.
  • Previous
    A No-Location Future
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    A No-Location Future

    Greater automation and freelance outsourcers will make physical location less relevant. Whereas the last two decades have seen one-location outsourcing, now companies have dozens of locations. But that might succumb to location-less jobs, due to automation and other technologies.
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    No-Location Threatens Offshore Countries
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    No-Location Threatens Offshore Countries

    Countries in low-value-add niches may see opportunities erode with the rise of no-location jobs, and will need a strategy to aggressively rise in the value chain and stay relevant.
 

Since the turn of the millennium, the value chain for IT back-office services has evolved dramatically, resulting in the use of talent from all across the globe. Initially, the impetus was to reduce costs through offshoring. Then came outsourcing, in which back-office operations were handled by specialized third-parties. That development is being followed by automation, with robots being programmed to perform routine tasks even less expensively than low-cost labor. A new study, by global management consulting firm A. T. Kearney, finds that "these three sequential waves of cost arbitrage are acting in concert today." The result is a wealth of choices enabling companies to plumb talent anywhere and nowhere, bringing into vogue "No Location" jobs. The A. T. Kearney report, "The 2014 Global Services Location Index," tracks the "contours of the offshoring landscape" and ranks more than 50 potential destinations, taking into account financial factors, people skills and availability, and the business environment. It identifies countries with the strongest underlying fundamentals based on 25 metrics to potentially deliver IT, business process outsourcing, and voice services. To see the full report, click here.

 
 
 
 
 
Karen A. Frenkel writes about technology and innovation and lives in New York City.

 
 
 
 
 
 

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